A companys series B,8% preferred stock has the following features:·A par value of $50 and pays quarterly dividends.·Its current market value is $35.·The shares are
A. $33.33.
B. $45.02.
C. $52.00.
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If the yield to maturity on an annual-pay bond is 7.75%, the bond-equivalent yield is closest to:
A. 7.61%.
B. 7.90%.
C. 8.05%.
In the current year, a company increased its deferred tax asset by $500,000. During the year, the company most likely:
A. Becameentitledtoa$500,000taxrefund.
B. Reportedaloweraccountingprofitthantaxableincome.
C. Hadpermanentdifferencesbetweenaccountingprofitandtaxableincome.
A firm in the market environment characterized by monopolistic competition will most likely:
A. Continuetoexperienceeconomicprofitinthelongrun.
B. Haveawell-definedsupplyfunctionreflectingitsmarginalandaveragecosts.
C. Havemanycompetitors,eachofwhichfollowsitsownproductdifferentiationstrategy.
A cell phone manufacturer has switched to high margin premium-priced products with the most innovative features as part of its product differentiation strategy. Which of the following other changes is
Anincreaseininventorylevels
B. AdecreaseinR&Dexpenditures
C. Anincreaseinadvertisingexpenditures